The Centers for Medicare & Medicaid Services (CMS) has released a proposed rule for the Inpatient Prospective Payment System (IPPS) for fiscal year (FY) 2026. Here are four key points:Advisory Board
- Payment Increase: CMS proposes a net 2.4% increase in Medicare inpatient payment rates for FY 2026 compared to FY 2025. This 2.4% update includes a 3.2% hospital market basket increase, offset by a 0.8% productivity adjustment. AHA Annual Meeting+1American Hospital Association+1
- Additional Payments: The proposed rule includes a $1.5 billion increase in payments to disproportionate share hospitals (DSH) that serve a high proportion of low-income and uninsured patients, and a $234 million increase in new medical technology payments. KHA+4American Hospital Association+4Axios+4
- Quality Reporting Changes: CMS proposes significant changes to its hospital quality reporting and value programs, including the addition of new measures and the removal of others, aiming to streamline regulations and reduce provider burdens. Centers for Medicare & Medicaid Services+4AHA Sponsor+4American Hospital Association+4
- Stakeholder Concerns: The American Hospital Association expressed concern that the proposed updates may adversely affect hospitals' ability to serve their communities, particularly in rural and underserved areas.
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